Question

A company has cost function C(q)=4000+2q dollars adn revenue R(q)=10q dollars.

a)What are the fixed costs for the company?
b)What is the marginal Cost?
c)What price is the company charging for its product?
d)Graph C(q) and R(q) on the same axes and label the break even point. Explain how you know the company makes a profit if the quantity produced is greater than the break even point.
e) Find the break even point

Answer 1

The fixed costs for the company are $4000. The marginal cost is 2. The price charged by the company for its product is $10. The break even point is 200 units.

Step-by-step explanation:

a) The fixed costs for the company can be determined by looking at the cost function. In this case, the fixed costs are $4000.

b) The marginal cost can be calculated by finding the derivative of the cost function. In this case, the marginal cost is 2.

c) The price charged by the company for its product can be determined by looking at the revenue function. In this case, the price is $10.

d) To find the break even point, set the revenue function equal to the cost function and solve for q. In this case, the break even point is 200 units.

e) The break even point can be found by setting the revenue function equal to the cost function and solving for q. In this case, the break even point is 200 units.